Matthews International Corp (MATW) 2024 Q1 法說會逐字稿

Welcome to Matthews International first-quarter fiscal 2024 financial results conference call.

歡迎參加 Matthews International 2024 財年第一季財務業績電話會議。

(Operator Instructions) Please note this conference is being recorded.

（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to Bill Wilson, Senior Director of Corporate Development.

我現在將會議交給企業發展高級總監比爾威爾森 (Bill Wilson)。

Thank you, you may begin.

謝謝，你可以開始了。

Great.

偉大的。

Thank you, Sherry, and good morning, everyone, and welcome to the Matthews International first-quarter and fiscal year 2024 conference call.

謝謝雪莉，大家早安，歡迎參加 Matthews International 第一季和 2024 財年電話會議。

This is Bill Wilson, Senior Director of Corporate Development.

我是比爾‧威爾遜，企業發展資深總監。

With me today are Joe Bartolacci, President and Chief Executive Officer and Steve Nicola, our Chief Financial Officer.

今天與我在一起的有總裁兼執行長喬·巴托拉奇 (Joe Bartolacci) 和財務長史蒂夫·尼古拉 (Steve Nicola)。

Before we start, I would like to remind you that our earnings release was posted on our website, www.matw.com in the investors section last night.

在開始之前，我想提醒您，我們的收益報告已在昨晚發佈在我們網站 www.matw.com 的投資者部分。

The presentation for our call can also be accessed in the investors section of the website.

我們的電話會議演示也可以在網站的投資者部分訪問。

Any forward-looking statements in connection with this discussion are being made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

與本次討論相關的任何前瞻性陳述均根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。

Factors that could cause the company's results to differ from those discussed today are set forth in the company's annual report on Form 10-K and other periodic filings with the SEC.

本公司向 SEC 提交的 10-K 表格年度報告和其他定期文件中列出了可能導致公司業績與今天討論的結果不同的因素。

In addition, we will be discussing non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics.

此外，我們將討論非公認會計準則財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的揭露和調節表。

In connection with any forward-looking statements and non-GAAP financial information, please read the disclaimer included in today's presentation materials located on our website.

關於任何前瞻性陳述和非公認會計準則財務信息，請閱讀我們網站上今天演示材料中包含的免責聲明。

And now I'll turn the call over to Joe.

現在我將把電話轉給喬。

Thank you, Bill.

謝謝你，比爾。

Good morning.

早安.

Despite the EBITDA shortfall versus prior year, we are pleased with our fiscal '24 first quarter results.

儘管 EBITDA 與上年相比有所下降，但我們對 24 財年第一季的業績感到滿意。

All of our businesses exceeded our internal expectations, except energy, which saw delays in our projected deliveries for our largest customer, which are outside of our control.

我們所有的業務都超出了我們的內部預期，但能源除外，我們最大客戶的預計交付出現了延誤，這是我們無法控制的。

Overall, we reported a modest increase in consolidated sales to $450 million this quarter from $449 million in the first quarter of fiscal '23.

總體而言，我們報告本季的綜合銷售額從 23 財年第一季的 4.49 億美元小幅成長至 4.5 億美元。

We cautioned last quarter however, customer readiness to accept our equipment throughout the year will be, and in this quarter clearly was, the primary factor behind the performance of the energy business as delays have impacted the timing of anticipated revenues for our fiscal '24 first quarter.

We cautioned last quarter however, customer readiness to accept our equipment throughout the year will be, and in this quarter clearly was, the primary factor behind the performance of the energy business as delays have impacted the timing of anticipated revenues for our fiscal '24 first四分之一.

Even with the timing of the energy sales, sales for the industrial segment increased compared to the first quarter last year.

即使考慮到能源銷售的時機，工業部門的銷售額仍比去年第一季有所成長。

And together with OLBRICH and the rest of our industrial technologies segment, we have almost $260 million of backlog expected to be substantially delivered this fiscal year.

與 OLBRICH 和我們工業技術部門的其他部門一起，我們預計本財政年度將大量交付近 2.6 億美元的積壓訂單。

Memorialization sales also increased compared to last year, and SGK sales were modestly down largely due to lower retail base sales and continued weakness in the European brand market.

與去年相比，紀念銷售額也有所成長，而 SGK 銷售額則小幅下降，這主要是由於零售基礎銷售額下降以及歐洲品牌市場持續疲軟。

For our industrial segment, we continue to receive significant inbound interest for our unique energy solutions from almost all of the major global OEMs and battery manufacturers.

對於我們的工業領域，幾乎所有全球主要原始設備製造商和電池製造商都對我們獨特的能源解決方案表現出濃厚的興趣。

The benefits of our solutions remain clear.

我們的解決方案的優勢仍然顯而易見。

By leaning on our industry-leading expertise, we have developed processes that produce -- that reduce customer cost of production by lowering capital investment, labor cost, and energy consumption while greatly reducing any environmental concerns.

憑藉我們行業領先的專業知識，我們開發了生產工藝，透過降低資本投資、勞動力成本和能源消耗來降低客戶的生產成本，同時大幅減少任何環境問題。

As a result, we continue to see an influx of inquiries from potential customers who are still several years behind our largest customer.

因此，我們繼續看到來自潛在客戶的大量詢問，他們仍然落後我們最大的客戶幾年。

We believe that the breadth of these inquiries reflects a continued vibrancy in the EV space and expect to announce developments on orders throughout the course of the year.

我們相信，這些詢問的廣度反映了電動車領域的持續活力，並預計將在全年宣布訂單進度。

Regarding other energy solutions news, I'm happy to announce that we landed our first significant order for the production of hydrogen fuel cell equipment and are in discussions with the major US OEM on joint development work relating to hydrogen fuel cells.

關於其他能源解決方案新聞，我很高興地宣布，我們獲得了第一個重要的氫燃料電池設備生產訂單，並正在與美國主要原始設備製造商就氫燃料電池的聯合開發工作進行討論。

In addition, in collaboration with a well-known OEM, we have applied for federal funding for the joint development of a hydrogen fuel cell production facility here in the US that we will own.

此外，我們還與一家知名 OEM 合作，申請了聯邦資助，在美國共同開發我們將擁有的氫燃料電池生產設施。

Interest in hydrogen fuel cell production is growing, especially with heightened levels of government support in Europe and in the US.

人們對氫燃料電池生產的興趣與日俱增，特別是隨著歐洲和美國政府加強支持。

In light of these activities and discussions, coupled with the fact that we are still working through approximately half of the $200 million in orders we announced last year.

鑑於這些活動和討論，再加上我們仍在處理去年宣布的 2 億美元訂單中的大約一半。

We currently believe that the energy solutions revenue will be higher in fiscal 2024 than in the previous year.

我們目前認為2024財年能源解決方案營收將高於前一年。

With respect to our other industrial technology businesses.

關於我們的其他工業技術業務。

Our product identification and surfaces business experienced good volume and pricing growth during the first quarter.

我們的產品識別和表面業務在第一季經歷了良好的銷售和價格增長。

We anticipate this is a trend that will continue.

我們預計這種趨勢將持續下去。

We continue to make good progress on our new print engine product, which remains on track to be launched around the end of the calendar year.

我們的新列印引擎產品持續取得良好進展，該產品仍有望在今年底推出。

We will provide an update on the launch timeline this summer.

我們將在今年夏天提供發佈時間表的最新資訊。

As for warehouse automation, sales in the first quarter were lower on a year-over-year basis, consistent with what the overall market is seeing.

至於倉庫自動化，第一季的銷售額年減，與整體市場狀況一致。

But we believe this will recover in the second half of the year.

但我們相信這一情況將在下半年恢復。

Note that this business is typically slower in our first fiscal quarter due to the holiday shopping season.

請注意，由於假日購物季，該業務在我們的第一個財季通常會放緩。

With that said, we did see a softening in the market during the quarter but continue to anticipate a solid year based on our existing backlogs and mix.

話雖如此，我們確實看到本季市場疲軟，但根據我們現有的積壓訂單和產品組合，我們繼續預計今年將表現強勁。

Our memorialization business performed modestly better than expected in the quarter, reporting $208 million in sales despite a decline in casket sales, which returned to normalized levels.

我們的紀念業務在本季度的表現略好於預期，儘管棺材銷售額有所下降，但銷售額仍達到了 2.08 億美元，並恢復到正常水平。

The business benefited from the contribution of our recent acquisition, Eagle Granite.

該業務受益於我們最近收購的 Eagle Granite 的貢獻。

As we look to the balance of the year, we are currently seeing higher than normal volumes in the past few weeks.

展望今年剩餘時間，我們目前看到過去幾週的成交量高於正常水平。

So we are expecting this business to continue to perform well.

因此，我們預計這項業務將繼續表現良好。

Our memorialization business continued to outperform pre-COVID operating results, reflecting improvements that were made to the business over the last few years that have led to higher sales and higher performance overall.

我們的紀念業務持續優於新冠疫情前的經營業績，反映出過去幾年業務的改進，帶來了更高的銷售額和更高的整體業績。

As a testament to these improvements, we continue to win new accounts in our memorialization section -- segment.

作為這些改進的證明，我們繼續在紀念版塊贏得新客戶。

A reflection of the quality of our products and services.

反映我們的產品和服務的品質。

As I said before, we expect another solid year of results from memorialization.

正如我之前所說，我們預計今年的紀念活動將會取得豐碩的成果。

As for SGK, the segment reported operating results in the first quarter despite reporting -- reported solid operating results in the first quarter, despite reporting slightly lower sales compared to the corresponding period in fiscal '23, thanks to pricing and cost actions taken over the past 12 months.

至於SGK，該部門報告了第一季的經營業績，儘管報告稱第一季的經營業績穩健，儘管其銷售額與23 財年同期相比略有下降，這要歸功於2019 年採取的定價和成本行動。過去 12 個月。

US and Asia Pacific brand sales were relatively stable and the lower retail base sales was primarily due to timing of projects pushed into latter quarters.

美國和亞太地區的品牌銷售相對穩定，零售基數銷售較低主要是由於專案時間推到了後幾個季度。

But we still continue to see softness in the European brand market.

但我們仍然看到歐洲品牌市場疲軟。

Our team at SGK should be commended for their work and commitment during this challenging period as we won significant new business from several global brands that are just beginning to be transitioned.

我們 SGK 團隊在這個充滿挑戰的時期所做的工作和承諾值得讚揚，因為我們從幾個剛開始轉型的全球品牌中贏得了重要的新業務。

The team is also beginning to see the benefits of the strategy to extend our marketing execution services to e-commerce digital marketing services that we expect will reach over $40 million in sales this year.

該團隊也開始看到將我們的行銷執行服務擴展到電子商務數位行銷服務的策略的好處，我們預計今年的銷售額將超過 4000 萬美元。

This platform places SGK ahead of significant competitors in the space and is a key differentiator as we continue to win new work from our competitors.

該平台使 SGK 領先於該領域的重要競爭對手，並且是我們不斷從競爭對手那裡贏得新作品的關鍵差異化因素。

We believe that this strategy will drive future market share growth in the enormous market for digital marketing.

我們相信，這項策略將推動數位行銷巨大市場未來市場份額的成長。

We expect this business to deliver a good year, particularly as our customers are beginning to realize the need to reinvest in their brands.

我們預計這項業務將迎來美好的一年，特別是當我們的客戶開始意識到需要對其品牌進行再投資時。

Finally, Steve will provide greater detail on this, but I'm happy to announce that we renewed our revolving credit facility and extended it to 2029 with no major changes in pricing and terms and conditions.

最後，史蒂夫將提供更多相關細節，但我很高興地宣布，我們更新了循環信貸安排並將其延長至 2029 年，定價以及條款和條件沒有重大變化。

Having the comfort of access to capital and a supportive bank group during this extended period of uncertainty in the global economy is essential.

在全球經濟長期不確定的時期，獲得資本和銀行集團的支持至關重要。

Our leverage target is scheduled to be -- excuse me, our leverage target is to approach three by the end of the year.

我們的槓桿目標預定是－對不起，我們的槓桿目標是到年底接近3。

As we progress through 2024, we anticipate a reduction in working capital in the latter half of the fiscal year as we convert to cash from the orders we received last year.

隨著 2024 年的進展，我們預計本財年下半年的營運資金將減少，因為我們將去年收到的訂單轉換為現金。

Due to the timing of deliveries, we should see stronger cash flow trends in the latter portion of the fiscal year and into the next.

由於交付時間的原因，我們應該會在本財年下半年和下一財年看到更強的現金流趨勢。

We are still currently projecting continued consolidated sales growth and EBITDA for the full year despite the current delays in energy.

儘管目前能源方面存在延誤，但我們目前仍預期全年綜合銷售和 EBITDA 將持續成長。

As discussed above, interest in our fast-growing business remained strong with over $100 million in backlog at the end of the first quarter.

如上所述，人們對我們快速成長的業務的興趣依然強勁，第一季末的積壓訂單超過 1 億美元。

I caution however, given the increased level of larger long-term projects, the timing of orders, deliveries remains a wildcard.

但我警告說，鑑於大型長期項目數量的增加，訂單和交付的時間仍然是一個通配符。

We continue to expect our fiscal '24 results to exceed the prior year.

我們繼續預期 24 財年業績將超過前一年。

But being more specific on growth levels is difficult to provide at this time.

但目前很難提供更具體的成長水準。

I'll now turn it over to Steve for more insight in our financial results.

我現在將把它交給史蒂夫，以獲取有關我們財務業績的更多見解。

Steve?

史蒂夫？

Thank you, Joe, and good morning.

謝謝你，喬，早安。

Consolidated sales for the fiscal 2024 first quarter were $450 million compared to $449.2 million a year ago.

2024 財年第一季的綜合銷售額為 4.5 億美元，去年同期為 4.492 億美元。

The increase primarily reflected higher sales for the industrial technologies and memorialization segments.

這一增長主要反映了工業技術和紀念領域銷售額的增加。

The Industrial Technology segment reported a sales increase of $2.2 million compared to a year ago, primarily reflecting higher engineering product identification and surfaces sales.

工業技術部門的銷售額與去年同期相比增加了 220 萬美元，主要反映了工程產品標識和表面銷售額的增加。

Memorialization sales were $208.1 million for the current quarter compared with $206.5 million a year ago, primarily reflecting higher granite sales and the acquisition of Eagle Granite last fiscal year.

本季的紀念銷售額為 2.081 億美元，而去年同期為 2.065 億美元，主要反映了花崗岩銷售額的增加以及上一財年對 Eagle Granite 的收購。

Sales for the SGK Brand Solutions segment were $3.1 million lower than a year ago, primarily reflecting lower retail base sales and continued softness in the European brand markets.

SGK Brand Solutions 部門的銷售額比一年前減少了 310 萬美元，主要反映了零售基礎銷售額的下降以及歐洲品牌市場的持續疲軟。

On a consolidated basis, changes in currency rates had a favorable impact of $5.1 million on current quarter sales compared to a year ago.

綜合來看，與去年同期相比，匯率變動對本季銷售額產生了 510 萬美元的有利影響。

On a GAAP basis, net loss attributable to the company for the quarter ended December 31, 2023, was $2.3 million, or $0.07 per share compared to income of $3.7 million or $0.12 per share in the prior period.

根據公認會計原則，截至 2023 年 12 月 31 日的季度，公司應佔淨虧損為 230 萬美元，即每股 0.07 美元，而上一期間的收入為 370 萬美元，即每股 0.12 美元。

On a non-GAAP adjusted basis, earnings for the fiscal 2024 first quarter were $0.37 per share compared to $0.53 per share a year ago.

以非公認會計準則調整後，2024 財年第一季的每股收益為 0.37 美元，而去年同期為每股 0.53 美元。

The decrease was primarily attributable to lower consolidated adjusted EBITDA and higher interest expense for the current quarter compared to a year ago.

下降的主要原因是本季綜合調整後 EBITDA 較低以及利息支出較去年同期較高。

Consolidated adjusted EBITDA which represents net income before interest expense, income taxes, depreciation and amortization, and other adjustments for the fiscal 2024 first quarter was $45.5 million compared to $49.3 million a year ago.

2024 財年第一季合併調整後 EBITDA（扣除利息費用、所得稅、折舊及攤提以及其他調整前的淨利）為 4,550 萬美元，去年同期為 4,930 萬美元。

The decrease reflected lower adjusted EBITDA for the industrial technologies and memorialization segments, offset partially by an increase in adjusted EBITDA for the SGK Brand Solutions segment and lower corporate and other nonoperating costs.

這一下降反映了工業技術和紀念部門調整後 EBITDA 的下降，但部分被 SGK 品牌解決方案部門調整後 EBITDA 的增加以及企業和其他非營運成本的降低所抵消。

Changes in currency rates had a favorable impact of $354,000 on current quarter consolidated adjusted EBITDA compared to a year ago.

與去年同期相比，匯率變動對本季綜合調整後 EBITDA 產生了 354,000 美元的有利影響。

Please see the reconciliations of adjusted EBITDA and non-GAAP adjusted earnings per share provided in our earnings release.

請參閱我們的收益報告中提供的調整後 EBITDA 和非 GAAP 調整後每股收益的調整表。

Please turn to slide 8 to begin a review of our segment results.

請翻到投影片 8，開始回顧我們的細分結果。

Sales for the industrial technology segment for the fiscal 2024 first quarter were $111.4 million compared to $109.1 million a year ago.

2024 財年第一季工業技術部門的銷售額為 1.114 億美元，去年同期為 1.091 億美元。

The engineering business reported higher sales for the current quarter compared to a year ago, primarily reflecting further growth in the energy storage solutions business.

工程業務本季的銷售額較去年同期增加，主要反映了儲能解決方案業務的進一步成長。

The product identification and surfaces businesses also reported higher sales for the current quarter compared to last year.

產品識別和表面業務的本季銷售額也高於去年。

Sales for the segment's warehouse automation business declined from a year ago, primarily reflecting the lower order rates we indicated in our previous call and the normal seasonality of this business.

該部門倉庫自動化業務的銷售額較上年同期有所下降，主要反映了我們在上次電話會議中指出的訂單率較低以及該業務的正常季節性。

Sales for the automotive equipment business that was acquired as part of the OLBRICH R&S acquisition also decline as we continue to wind down this small business.

隨著我們繼續縮減這項小型業務，作為 OLBRICH R&S 收購的一部分而收購的汽車設備業務的銷售額也有所下降。

Changes in currency rates had a favorable impact of $3.7 million on the segment's current quarter sales compared to a year ago.

與去年同期相比，匯率變化對該部門當前季度的銷售額產生了 370 萬美元的有利影響。

Adjusted EBITDA for the industrial technology segment for the current quarter was $9.6 million compared to $12.2 million a year ago.

本季工業技術領域調整後 EBITDA 為 960 萬美元，去年同期為 1,220 萬美元。

The decrease primarily reflected lower margins for the engineering business compared to a year ago, which is influenced by the stage and timing of the projects.

這一下降主要反映了工程業務的利潤率較上年同期下降，這受到專案階段和時間表的影響。

The impact of lower warehouse and automation sales and the small divestiture.

倉庫和自動化銷售額下降以及小規模資產剝離的影響。

The declines were partially offset by higher sales and improved pricing for the product identification and surfaces businesses and favorable currency rate changes.

銷售額的增加、產品識別和表面業務定價的提高以及有利的匯率變化部分抵消了下降幅度。

Changes in currency exchange rates had a favorable impact of $405,000 on the segment's current quarter adjusted EBITDA compared to a year ago.

與去年同期相比，貨幣匯率的變化對該部門當前季度調整後的 EBITDA 產生了 405,000 美元的有利影響。

Please turn to slide 9.

請翻到投影片 9。

Sales for the memorialization segment for the fiscal 2024 first quarter were $208.1 million compared to $206.5 million for the same quarter a year ago.

2024 財年第一季紀念部門的銷售額為 2.081 億美元，而去年同期為 2.065 億美元。

The increase primarily reflected higher granite memorials sales and the acquisition of Eagle Granite, partially offset by lower unit sales of caskets.

這一增長主要反映了花崗岩紀念館銷售的增加和 Eagle Granite 的收購，但部分被棺材單位銷售的下降所抵消。

Changes in foreign currency rates had a favorable impact of $381,000 on current quarter sales compared to a year ago.

與去年同期相比，外幣匯率的變化對本季銷售額產生了 381,000 美元的有利影響。

Memorialization adjusted EBITDA for the current quarter was $36.7 million compared to $39.1 million for the same quarter last year.

紀念活動本季調整後 EBITDA 為 3,670 萬美元，去年同期為 3,910 萬美元。

The decrease primarily resulted from the impact of the decline in casket sales, which was partially offset by the increase in granite memorials sales, the acquisition of Eagle Granite and improved net pricing changes.

這一下降主要是由於棺材銷售下降的影響，但花崗岩紀念碑銷售的成長、收購 Eagle Granite 和淨定價變化的改善部分抵消了這一影響。

Material and labor costs were higher for the quarter, but were offset by the benefits of cost savings initiatives.

本季的材料和勞動成本較高，但被成本節約措施的好處所抵銷。

Please turn to Slide 10.

請翻到投影片 10。

The SGK Brand Solutions segment reported sales of $130.5 million for the quarter ended December 31, 2023, compared to $133.6 million a year ago.

SGK Brand Solutions 部門報告稱，截至 2023 年 12 月 31 日的季度銷售額為 1.305 億美元，而去年同期為 1.336 億美元。

The decrease primarily reflected the decline in retail base sales, primarily reflecting timing and lower sales in the segment's European brand markets on a constant currency basis.

這一下降主要反映了零售基礎銷售額的下降，主要反映了該部門歐洲品牌市場以固定匯率計算的時機和銷售額下降。

The declines were offset partially by improved pricing, a small acquisition in December 2022, and the impact of favorable currency changes.

定價改善、2022 年 12 月的一項小規模收購以及有利的貨幣變化的影響部分抵消了這一下降。

Currency rate changes had a favorable impact of $969,000 on current quarter sales compared to a year ago.

與去年同期相比，匯率變動對本季銷售額產生了 969,000 美元的有利影響。

Adjusted EBITDA for the SGK Brand Solutions segment was $12.9 million for the current quarter compared to $12.2 million a year ago.

本季 SGK 品牌解決方案部門調整後 EBITDA 為 1,290 萬美元，而去年同期為 1,220 萬美元。

The increase primarily reflected the benefits of improved pricing and the segment's recent cost reduction actions offset partially by the impact of lower sales.

這一增長主要反映了定價改進的好處以及該部門最近的成本削減行動，部分抵消了銷售下降的影響。

Changes in currency rates had an unfavorable impact of $142,000 on adjusted EBITDA compared to a year ago.

與一年前相比，匯率變動對調整後 EBITDA 產生了 142,000 美元的不利影響。

Please turn to Slide 11.

請翻到投影片 11。

Cash used in operating activities for the quarter ended December 31, 2023, was $27.3 million compared to $36.2 million a year ago.

截至 2023 年 12 月 31 日的季度營運活動使用的現金為 2,730 萬美元，而去年同期為 3,620 萬美元。

Operating cash flow for the prior quarter included payments of $24.2 million in connection with the termination and settlement of the company's supplemental retirement plan.

上一季的營運現金流量包括與公司補充退休計畫終止和結算相關的 2,420 萬美元付款。

Current year operating cash utilization primarily reflected higher working capital.

本年度經營現金利用率主要反映了營運資本的增加。

Our first fiscal quarter is seasonally slower from an operating cash flow perspective, primarily due to year end related payments such as performance-based compensation and the seasonality of earnings.

從營運現金流的角度來看，我們的第一財季季節性放緩，主要是由於年終相關付款，例如基於績效的薪酬和收益的季節性。

Outstanding debt was $862 million at December 31, 2023, compared to $790 million at September 30, 2023.

截至2023年12月31日，未償債務為8.62億美元，2023年9月30日為7.9億美元。

At December 31, 2023, the company's leverage ratio based on net debt, which represents outstanding debt less cash and trailing 12 months adjusted EBITDA was 3.71 compared to 3.31 at September 30, 2023.

截至2023年12月31日，該公司基於淨債務（即未償債務減去現金和過去12個月調整後的EBITDA）的槓桿率為3.71，而2023年9月30日為3.31。

The increase primarily reflected the first quarter operating cash utilization I just referenced.

這一成長主要反映了我剛才提到的第一季營運現金利用率。

At December 31, 2022, our leverage ratio was 3.85.

截至2022年12月31日，我們的槓桿率為3.85。

Additionally, earlier this week we renewed our $750 million domestic revolving credit facility under generally the same pricing terms and conditions as the previous facility.

此外，本週早些時候，我們更新了 7.5 億美元的國內循環信貸額度，定價條款和條件與先前的額度基本相同。

The term of the renewed facility is five years subject to the terms and conditions of this facility.

續展設施的期限為五年，具體取決於該設施的條款和條件。

We had strong interest in the current renewal process with total commitments from participating banks exceeding $1.1 billion.

我們對目前的續約流程非常感興趣，參與銀行的承諾總額超過 11 億美元。

For the fiscal 2024 first quarter, the company purchased approximately 466,000 shares under the stock repurchase program at an average cost of $36.88 per share.

2024財年第一季，該公司根據股票回購計畫購買了約466,000股股票，平均成本為每股36.88美元。

A majority of the purchases were in connection with withholding tax obligations on equity compensation.

大部分收購與股權補償的預扣稅義務有關。

Since equity compensation is generally awarded annually in November, a substantial portion of vesting activity occurs in our fiscal first quarter each year.

由於股權薪酬通常在每年 11 月授予，因此很大一部分歸屬活動發生在我們每年第一財季。

Approximately 30.7 million shares were outstanding at the end of the fiscal 2024 first quarter.

截至 2024 財年第一季末，流通股數約為 3,070 萬股。

Finally, the Board last week declared a dividend of $0.24 per share on the company's common stock.

最後，董事會上週宣布派發公司普通股每股 0.24 美元的股息。

The dividend is payable February 19, 2024, to stockholders of record February 5, 2024.

該股將於2024年2月19日支付給2024年2月5日登記在冊的股東。

This concludes the financial review, and we will now open the call for any questions.

財務審查到此結束，我們現在將開始徵求任何問題。

Sherry?

雪莉酒？

(Operator Instructions) Dan Moore, CJS Securities.

（操作員指令）Dan Moore，CJS 證券。

Thank you.

謝謝。

Good morning, Joe. Good morning, Steve.

早安，喬。早安，史蒂夫。

Good morning, Dan.

早上好，丹。

Good morning.

早安.

I want to start with energy storage.

我想從能量儲存開始。

Obviously, clearly timing or visibility around the timing of order intake is still difficult in the current environment completely, understandably.

顯然，在當前環境下，清楚地確定訂單接收時間的時機或可見性仍然是困難的，這是可以理解的。

Having said that, maybe just talk a little bit more about discussions you're having not only with your large client, but with other potential customers.

話雖如此，也許只是多談談您不僅與大客戶而且與其他潛在客戶進行的討論。

And when would you need to see a pickup in orders in order to generate the positive growth that you expect year over year, not only in energy storage, but also in overall kind of revenue and EBITDA?

什麼時候需要看到訂單增加才能實現您預期的逐年正成長，不僅在能源儲存方面，而且在整體收入和 EBITDA 方面？

Seems a lot of questions in that one, let me try to parse it.

看來問題有點多，我來分析一下。

So first off, we continue to discuss with just about everybody.

首先，我們繼續與幾乎所有人進行討論。

I mean, it's a very hot topic throughout the industry.

我的意思是，這是整個行業的一個非常熱門的話題。

Our discussions are complex as you might expect, you need to understand, and this we've tried to kind of say this to folks.

正如您所期望的那樣，我們的討論很複雜，您需要理解，我們試圖向人們傳達這一點。

What we provide is a very complex piece of solution to the puzzle.

我們提供的是一個非常複雜的解決方案。

There is a lot of work in the front end and on the back end that we don't participate in.

前端和後端有很多工作我們沒有參與。

A lot of that work revolves around the chemistries, it revolves about the technical specifications, the processes they intend to use.

很多工作都圍繞著化學、技術規格以及他們打算使用的流程。

We are a critical -- I mean, utterly critical part of that process.

我們是這個過程中至關重要的——我的意思是，絕對關鍵的部分。

But we don't control the balance of that puzzle, it's up to their -- our customer.

但我們無法控制這個難題的平衡，這取決於他們——我們的客戶。

So our discussions continue, as they can develop their specification, we oftentimes will be modifying our solution or customizing is a better way to put our solution to their needs, and that takes time.

因此，我們的討論仍在繼續，因為他們可以開發自己的規範，我們通常會修改我們的解決方案，或者客製化是使我們的解決方案滿足他們的需求的更好方法，這需要時間。

And our largest customer has the benefit of years of work in this, others are trying to catch up.

我們最大的客戶在這方面受益於多年的工作，其他人正在努力趕上。

As it relates to the balance of the year, whether it be orders from our existing customers or whether it is new customers.

因為這關係到今年的餘額，無論是我們現有客戶的訂單還是新客戶。

It's hard to tell.

很難說。

We have a balance of at least $100 million of the balance of the year.

我們今年的餘額至少有1億美元。

We recognize some $30 million or so in this quarter.

本季我們確認了大約 3000 萬美元左右。

I think we recognize, if I recall correctly, about $150 million last year.

如果我沒記錯的話，我想去年我們認識到大約 1.5 億美元。

It's not a long putt to be able to exceed that number throughout the course of the year as we kind of go through this.

當我們經歷這個過程時，能夠在全年中超過這個數字並不是一個漫長的推桿。

Now we have been pretty clear that the timing of some of these revenue recognitions are things that are outside of our control, given the readiness of customers to be able to accept product.

現在我們已經非常清楚，考慮到客戶願意接受產品，其中一些收入確認的時間是我們無法控制的。

So I would tell you that right now we're confident and we think we can get there.

所以我想告訴你們，現在我們有信心，我們認為我們可以實現這一目標。

Very helpful.

很有幫助。

Maybe switching gears, memorialization.

也許換個方式，紀念一下。

Just housekeeping, remind me what the Eagle Granite contribution was and just your expectations for growth -- ballpark terms as we look at first caskets then memorials and cremation equipment throughout the balance.

只是家務管理，請提醒我 Eagle Granite 的貢獻是什麼，以及您對增長的期望 - 當我們首先查看棺材，然後是紀念碑和整個平衡的火葬設備時，這是大概的術語。

Okay.

好的。

So I would tell you as we look at the various businesses, as we said earlier, that we're back to a more normalized death rate throughout the -- or the industry.

因此，正如我們之前所說，當我們審視各種業務時，我想告訴你們，我們整個產業或整個產業的死亡率已經回到了更正常化的水平。

However, we are seeing really elevated levels of mortality right now.

然而，我們現在看到死亡率確實很高。

Our casketed sales for the month of January is strong.

我們一月份的盒裝銷售強勁。

That is probably indicative of some of the pulmonary illnesses that are floating around in the country.

這可能表明該國正在流行一些肺部疾病。

So we expect that over the next 60 days, 90 days to be where our memorialization business will trend on the funeral home side.

因此，我們預計在接下來的 60 天、90 天裡，我們的紀念業務將在殯儀館方面呈現趨勢。

That as you know, translates ultimately to more of a cemetery product sales.

如您所知，這最終會轉化為更多的墓地產品銷售。

So as we kind of go through the year, we're expecting some modest growth, maybe relatively flat to modest growth in the overall memorialization segment.

因此，當我們度過這一年時，我們預計整個紀念領域會出現一些溫和的成長，可能是相對持平到溫和的成長。

But as I said earlier, Dan, recognize that this business is materially higher at that reset level than it was pre-COVID.

但正如我之前所說，丹認識到，在重置層面上，這項業務比新冠疫情之前的水平要高得多。

Very helpful.

很有幫助。

One more on memorialization and I'll jump back for any follow-ups.

再來一篇關於紀念的文章，我會跳回來進行後續的討論。

But the margin ticked lower, you said, no, the business exceeded your internal expectations although overall margins ticked a little bit lower.

但利潤率卻下降了，你說，不，業務超出了你的內部預期，儘管整體利潤率下降了一點。

If cremation continues to grow and memorials are steady or grow modestly, are those incrementals in those businesses enough to offset potential decrementals in caskets?

如果火葬持續成長，而紀念館保持穩定或適度成長，這些業務的增量是否足以抵消棺材的潛在減少？

I know this is, yeah we're seeing an uptick here in mortality this quarter, but overall, the trend has been lower in caskets.

我知道，是的，本季死亡率有所上升，但總體而言，棺材的趨勢較低。

So can you hold the line?

那你能堅持住嗎？

In other words, can you get back to 18%, 20% margin in that business even if caskets tick lower by 1% or 2%?

換句話說，即使棺材價格下降 1% 或 2%，您的業務利潤率還能恢復到 18%、20% 嗎？

And just talk about that [algos] you would a little bit. and that's it, thanks.

只是談談你會的[演算法]。就是這樣，謝謝。

Sure, Dan.

當然，丹。

This is Steve, I'll speak to the first part of that question, and I'll let Joe jump in.

我是史蒂夫，我將回答該問題的第一部分，然後讓喬插話。

But specifically with respect to the quarter, we saw the decline in casket unit volumes as we mentioned.

但具體到本季度，正如我們所提到的，我們看到棺材單位數量有所下降。

So that was our expectation going into the quarter.

這就是我們對本季的預期。

We did have a stronger quarter from a granite memorial sales perspective.

從花崗岩紀念館銷售的角度來看，我們確實有一個更強勁的季度。

So on a like for like margin, that's what created some of the margin degradation is just the lower casket offset by that by the higher granite memorial sale.

因此，在同樣的利潤率下，這就是造成一些利潤率下降的原因，只是棺材價格較低，而花崗岩紀念館銷售較高，所抵消的。

But with respect to the margins, as we go throughout the year, as we get into this -- the stronger seasonal months, whether it's the winter months for caskets and the spring summer months for memorials, we do expect those margins to get better.

但就利潤率而言，隨著我們全年的發展，當我們進入這個季節時，無論是棺材的冬季月份還是紀念館的春季夏季月份，我們確實預計這些利潤率會變得更好。

Okay, great.

好的，太好了。

I will jump back in follow-ups, thank you.

我會在後續內容中跳回來，謝謝。

Liam Burke, B. Riley.

利亞姆·伯克，B.萊利。

Yes, thank you.

是的，謝謝。

Good morning, Joe. Good morning, Steve.

早安，喬。早安，史蒂夫。

Hi Liam, good morning.

嗨，利亞姆，早安。

Joe, could you give us some sense on how the profit initiatives at OLBRICH are progressing?

Joe，您能為我們介紹一下 OLBRICH 的利潤計畫進度嗎？

I mean it was essentially a breakeven business, you've got a little more flexibility in terms of costs now.

我的意思是，這本質上是一項盈虧平衡的業務，現在在成本方面有了更大的靈活性。

How's that progressing in terms of profit contribution?

利潤貢獻方面進展如何？

We expect it to be nice in contributory this year as we continued on the costs.

隨著我們繼續降低成本，我們預計今年的繳款會很好。

I mean, as we said in the past, we are locked into union contracts that prevented us from being able to take action until early late, latter part of the summer or early part of this quarter.

我的意思是，正如我們過去所說，我們被工會合約所束縛，這使我們無法採取行動，直到夏末或本季初。

So those actions are in place, and we expect it to be a nice contribution to the full year, which will help us achieve our results.

因此，這些行動已經到位，我們預計這將為全年做出很好的貢獻，這將有助於我們取得成果。

Great.

偉大的。

And either -- I guess, Steve mentioned that you're, on memorialization you're attracting new accounts.

或者 - 我想，史蒂夫提到你在紀念活動中吸引了新客戶。

Is that all products or caskets or bronze and granite memorials?

這些都是產品、棺材還是青銅和花崗岩紀念碑嗎？

I would say that we are winning accounts across the portfolio.

我想說的是，我們在整個投資組合中都贏得了客戶。

And as we move forward, we would get -- some of the gains that we had throughout COVID on the funeral home side, we retained and picked up others.

隨著我們向前邁進，我們將獲得在整個新冠疫情期間殯儀館方面取得的一些成果，我們保留並繼承了其他成果。

We picked up cemetery products as well.

我們也挑選了墓地產品。

So yes, the answer to your question is it is a broad mix of market share growth.

所以，是的，你的問題的答案是，這是市場份額成長的廣泛組合。

And on the cremation side, I know the business has gotten sort of lumpy because of the systems projects.

在火葬方面，我知道由於系統項目，業務變得有些不穩定。

But how is that shaping up based on the end of the quarter?

但從本季末來看，情況如何呢？

How is it shaping up for the rest of the year?

今年剩餘時間的情況如何？

Well, we're looking at hopefully a good year in that business as well.

嗯，我們希望該行業也能迎來美好的一年。

We're in the midst of another contract opportunity in the UK that we hope to win, of significance.

我們正在英國爭取另一個意義重大的合約機會。

So as that starts to ramp up, we should be able to give you an update on that over the course of the next quarter.

因此，隨著這種情況開始增加，我們應該能夠在下個季度向您提供最新情況。

But we're expecting solid results out of cremation over the course of the year.

但我們預計火葬在這一年會取得紮實的成果。

Thanks, Joe.

謝謝，喬。

Yeah.

是的。

We have reached the end of our question-and-answer session.

我們的問答環節已經結束。

I would like to turn the conference back over to Bill for closing comments.

我想將會議轉回給比爾徵求結束意見。

Great.

偉大的。

Thank you, Sherry, and thank you, everyone, for joining us today and your interest in Matthews.

謝謝雪莉，謝謝大家今天加入我們以及你們對馬修斯的興趣。

For additional information about the company and our financial results.

有關公司和我們的財務業績的更多資訊。

Please contact me or visit our website.

請聯絡我或造訪我們的網站。

Enjoy the rest of your day.

享受你一天剩下的時間。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes today's conference.

今天的會議到此結束。

You may disconnect your line at this time and thank you for your participation.

此時您可以斷開線路，感謝您的參與。